Six companies compete for four 4G licences

Six companies had tendered for a licence to run fourth-generation wireless (4G) telecommunications services by yesterday’s deadline. Enterprises competing for the four licences to be issued by the government in the first stage are Companhia de Telecomunicações de Macau SARL (CTM), China Telecom (Macau) Company Ltd, Hutchison Macau, and SmarTone, all of whom currently provide telecommunication services in Macau. Two ‘outsiders’ also submitted bids: China Mobile Hong Kong Company Ltd, and newly-founded telecom company U Hong. China Telecom told Business Daily that the short-term return on investment is not very promising as the cost of initiating the 4G network could be considerable but the operators cannot charge customers for the increased cost as other service providers may retain their fee-charging. Vice-General manager of China Telecom’s local branch, Mr. Song Tong, told Business Daily that he didn’t expect revenue growth anytime soon as the competition in the market is fierce but he looks forward to the development of the technology and the opportunities accompanying it. “It’s impossible to see a drastic increase in revenue but we’re eyeing the tremendous potential of the technology and the possibility that it could bring in a large increase in the number of users,” said Mr. Tong. “Currently, mobile phones are the main receivers of this 4G service but nowadays more devices are emerging as the terminal, such as cameras, watches and even electricity meters. For example, when you take a picture on your camera, it would upload to other devices right away through the 4G network. In future, more users will benefit from the network through different channels; we have to evolve with the market”. The China Telecom representative also told Business Daily that entering the 4G market together with other operators would lower the risk as they can share some infrastructure and MTel’s expanding service may help reduce costs. Mr. Song said even though the bid doesn’t seem to be a lucrative one for the time being, as a telecom operator they have the responsibility to cater to their customers and upgrade with the market. The company is confident that they are fully ready to embrace the technology as they have done so in many cities across Mainland China. CTM chief executive Vandy Poon Fuk Hei said earlier in a press briefing about CTM’s parent company Citic Telecom International Holdings Ltd’s interim results that his company was technically ready to run 4G services as soon as the licence was issued. He expects that the services could further boost CTM’s business and lift the monthly average revenue per user (ARPU) figure. In a written reply to Business Daily, Hutchison Macau said that they have abundant experience in telecommunication operations here in Macau and have the confidence to run the 4G network. “We have the confidence and the advantage of collaborating with the long-term development strategy of Macau’s telecommunication market and providing customers with better 4G service,” said Hutchison in the statement. Hutchison also embraces the competition. “With regard to how many LTE operators Macau can host depends on the market. From our point of view, fair competition is most important for the healthy development of Macau’s telecommunication market,” said Hutchison Macau. The government is issuing four 8-year licences for running the 4G services in the city by 2015. The telecom regulator also noted the possibility of launching a fifth licence within two years of issuing the first four 4G licences, depending on “actual conditions in the market”.